It is inevitable to adapt to the changing order of the global world.
In order to use the control mechanism on gold by the world financial authorities more effectively in our sector, various regulations have been introduced and sector players such as miners, refineries, banks and financial institutions have been subject to many obligations. Nadir Metal Rafineri Chairman of the Board of Directors Abdullah Tütüncü emphasizes that this change will affect all of those in the jewelry supply chain very soon.
Nadir Metal Rafineri Chairman of the Board Tütüncü stated that they are in a work aimed at sustainability of the sector, which started with training seminars in cooperation with IMMIB (İstanbul Mineral And Metals Exporters’ Association) in order to raise awareness for jewelers, especially for exporters, so that the sector is not affected negatively by this process. In particular, it is of great importance for the sustainability of jewelers to obtain certificates through independent audits by accredited to the institutions accepted by the representatives of the sector around the world within the responsible jewelery supply chain and by complying with the determined standards.
As is known, in most countries, gold is a financial instrument through the eyes of the banks and is generally kept in record. In particular, the fact that gold is physically easy to store and be traded can be converted very quickly into different currencies,providing a currency feature of gold Because of this feature of gold, the financial authorities of the world are creating many legal obligations in order to control the channels other than the stock market and banks. The main purpose of these authorities is to control the money and the assets that replace the money in the world due to strategic factors such as politics, security and domination. Within the scope of the control of gold, which is such an important issue, many obligations have already been imposed over the years to miners, refineries, banks and financial institutions.
In gold jewelery production, the fact that Turkey takes place in the first three countries along with India and Italy in the world, shows these obligations will soon become mandatory for all those involved in our country’s jewelry supply chain.
What Should Jewelers Do?
Jewelers in the jewelery supply chain must be prepared for these obligations in advance, without waiting for these obligations to be introduced by local legislation, and each jeweler should determine his / her own working criteria and customer acceptance standards and rules. While doing this, it will be beneficial to cooperate with the organizations representing Turkish jewelery sector, utilizing from the existing standards in the world and to establish the audit system according to the characteristics of the sector and the dynamics of the country.
In this context, Nadir Metal has started its works in cooperation with IMMIB and actively participates in all kinds of public-private cooperation in order to make our country’s jewelery sector sustainable, supporting stakeholder participation. If the sector does not participate in these activities today, we will face obstacles in the export phase tomorrow. These obligations are also the problem of foreign buyers and their compliance with these standards has been made compulsory and they are prohibited from working with persons and sub-suppliers who cannot comply with the standards. For example, one of them is the regulation on imports of precious metals (gold, tin, tungsten, tantalum) from abroad to the European Union, which will come into force as of 1 January 2021.
Currently, we see the effects of international standards on the jewelery sector in our country through the legal regulations promulgated within the scope of the fight against money laundering and audits conducted from time to time by MASAK. (The Financial Crimes Investigation Board). However, the scope we are talking about is much wider. The issue is not only about money laundering. The sensitivity of the subject is related tThe sensitivity of the subject is related to the circulation of the gold, replacement with money and it can be physically outside the banking system.
New Agenda Waiting for Exporters: Responsible Gold Supply Chain
Today, among the changing and developing issues related to the jewelery sector especially in the jewelry supply chain from mine to retail include; human rights violations, laundering of crime proceeds and contributing to the financing of terrorism, bribery and corruption, combating the negative impact on the environment. In order to raise awareness of the actors in the jewelery supply chain, Institutions that cooperate with OECD and represent the sector worldwide set standards for those who are members of these organizations to ensure that they carry out their activities in accordance with these standards.
As one of the founding members of OECD (Organisation For Economic Cooperation and Development ) our country actively participates and contributes to the work of OECD . The OECD’s international regulatory actions and initiatives and recommendations are the following: - OECD Convention on the Prevention of Bribery in International Business Transactions, - Prevention of Money Laundering, Financial Action Group, - Corporate Governance Principles. However, OECD expects member countries to comply with these rules by issuing a more detailed and comprehensive “Compliance Guide for Responsible Supply Chain for Mines of Conflict Affected and High Risk Areas” regulating the supply of gold, which is based on these regulations and recommendations. Such arrangements, prepared in the light of recommendations OECD and FATF, directly affect those in the gold supply chain, day by day this situation is gaining momentum and influencing a broad segment reaching from mine to retail.
New regulations will affect everyone
Turkey, already covered in gold jewelThe necessary awareness could not be formed in Turkey due to most of the companies that are in the gold jewelery supply chain can not be directly integrated by itself into international developments on responsible gold supply. It has been aimed to contribute to the formation of this awareness through the training seminars that started in cooperation with Nadir Metal and IMMIB and which will continue in the future. It should not be forgotten that the more the sector participation in these studies, the faster and more effective solutions to the problems faced by the sector will be. If we do this, the place and importance of the sector in the world gold market will increase, and those in the supply chain will be able to compete in both domestic and foreign markets, sustain their trade and grow in a sustainable manner. Thus, we will have done our duty against both our country and our sector.